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mel-nik [20]
3 years ago
5

Examine the relationship between total spending by government and consumers in a nation and the location of the countries gdp on

the business cycle
Business
1 answer:
Vanyuwa [196]3 years ago
5 0

Answer and Explanation:

  • Consumer as well as government overall expenditure seems to be a significant determinant of economic growth during a market. Unless the overall spending increases, the demand changes positively.
  • Hence, just before the total individual and corporate expenditure in something like a firm increases, it demonstrates that perhaps the country's affairs cycle is going to expand, and then when total expenditure drops significantly, it illustrates that the financial sector's business period is going via compression.

So that it is the right answer.

You might be interested in
Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company woul
ad-work [718]

Answer:

1) 0.8333

2) 16,666

3) 2.33

4) 56.40

5) 2.2

Explanation:

Share Exchange Ratio = Price per share for Target Company / Market price per share for Acquiring Company  = $50 / $60  =  0.8333

New shares issued by Acquiring Company = Shares of Target Company x Exchange ratio (20,000 x 0.8333) = 16,666

Total shares outstanding of the combined companies = 60,000 + 16,666  = 76,666

Post-merger EPS of the combined companies = ($150,000 + $30,000)/ 76,666 = $2.35

Pre-merger EPS of Acquiring Company = $150,000 / 60,000 = $2.50

Post-merger share price = $2.35 x 24 (pre-merger P/E = $60.00/$2.50) = $56.40

Purchase price = 50 * 20,000 = 1,000,000

Interest expense = 1,000,000 * 8% = 80,000

Post-merger earnings = 150,000 + 30,000 – 80,000 * (1-0.4) = 132,000

Therefore, Post-merger EPS of the combined companies = 132,000/60,000 = 2.2

6 0
4 years ago
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special ro
valentina_108 [34]

Answer:

1a. 3,000 units

1b. $1,050,000

2. See attachment.

3. contribution margin income statement

Sales  ($350 × 7,000 units)                            $2,450,000

Less Variable Cost  ($245 × 7,000 units))     ($1,715,000)

Contribution                                                       $735,000

Less Fixed Costs                                              ( $315,000)

Operating Profit                                                 $420,000

Explanation:

Break-even point (sales units ) = Fixed Cost ÷ Contribution per unit

                                                   = $315,000 ÷ ($350 - $245)

                                                   = 3,000

Break-even point (sales dollars) = Fixed Cost ÷ Contribution Margin Ratio

                                                     = $315,000 ÷ ($105/$350)

                                                     = $1,050,000

4 0
4 years ago
Managerial accounting is different from financial accounting in that:
OlgaM077 [116]

Managerial Accounting is different from Financial Accounting in that <em>c. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.</em>

The differences between Managerial Accounting and Financial Accounting do not arise because of Managerial accounting:

  • Focuses on the organization while financial accounting focuses on projects, etc.
  • Never includes non-monetary information; it includes non-monetary information than financial accounting
  • Used by investors, while financial accounting is used by creditors
  • Structured and controlled by GAAP.

Thus, the difference between the two is that Financial accounting is structured and controlled by GAAP and used by <em>investors and creditors</em>.  Managerial accounting is not structured by GAAP and is used by <em>management</em> in decision-making.

Learn more: brainly.com/question/13592085

6 0
3 years ago
A particular dress manufacturer closes a factory in South Carolina and moves the factory to Malaysia, where labor costs are lowe
mr_godi [17]

Answer:

de-industrialization

Explanation:

De-industrialization is a process in which there is a shift of industries from an economy.

It is not necessary that the industry is then relocated somewhere else.

But it does not work any further in the city it is setup. Here also, the factory is closed in South Carolina. That is de-industrialization in the current city.

Although, the industry is setup in Malaysia, but the company do not work in its earlier location. And it has shifted from original location.

Thus, it is a case of de-industrialization.

8 0
3 years ago
Frank and Bob are equal members in Soxy Socks, LLC. When forming the LLC, Frank contributed $57,000 in cash and $57,000 worth of
Paul [167]

Answer:

The gain (loss) related to this transaction will Bob report on his X4 return is $38,000

Explanation:

Solution

Given that

The value of land = 57,000

Less: Bob's Adjusted Basis in the land is = -$23,000

The Built in Gain allocated to BOB = $34,000

Now,

The consideration in sales = $65,000

Less: Land Value is = -57000

Both members gain to be allocated= 8000

Hence,

The Total Gain Allocated to BOB is = 34000+(8000*50%) =

34000 = 4000

= 38,000

Note: The original $34000 of built-in gain on the contributed land must be given to the contributing partner which is Bob.

The remaining $8000 of gain must be shared equally between Bob and Frank.

So, Bob will report $38000 gain ($34,000 + (50% × $8,000)) from this transaction on his returns

3 0
3 years ago
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